Stock market news: Indian equities declined for the third consecutive session on Thursday, 21 October as escalating conflict in the Middle East drove oil prices up to $112 a barrel, fuelling inflation concerns for the world’s third-largest crude oil importer.
The Nifty 50 fell 0.54% to 22,687.65, while the Sensex dropped 0.62% to 73,249.39. Broader markets also came under pressure, with the small-cap and mid-cap indices declining 1.1% and 0.9%, respectively.
Market expert Chandan Taparia has recommended two stocks to buy tomorrow — Federal Bank and Indian Hotels Company — with defined target prices and stop-loss levels.
Taparia has recommended buying Indian Hotels Company with a target price of ₹830 and a stop loss of ₹760. For Federal Bank, he has set a target price of ₹368 and a stop loss of ₹336.
On the Nifty options front, Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd, said the maximum Call OI is at the 23,000 and 23,200 strikes, while the maximum Put OI is at the 22,600 and 22,500 strikes.
“Call writing is seen at 23,300 then 23,150 strike, while Put writing is seen at 22,650 then 22,600 strike. Option data suggests a broader trading range between 22,400 and 23,200 zones, while an immediate range is between 22,500 and 23,000 levels,” said Taparia.
Nifty 50 Outlook
The Nifty 50 index opened with a gap-down and witnessed volatile swings throughout the session, remaining confined to a range. Despite sharp movements on either side, the index failed to establish a clear directional trend and formed a long-legged Doji-type candle on the daily frame, reflecting indecision between the bulls and bears.
“Now, till it holds below 22,700, weakness could extend towards 22,550, then 22,400 levels, while on the upside, immediate hurdles can be seen at 22,850, then 22,950 zones,” said Taparia.
Bank Nifty Outlook
Bank Nifty index opened on a negative note and drifted towards 54,450 zones in the initial hour of the session. Some recovery was seen from lower levels towards the 55,000 zone, but it remained choppy within a 350-point range in the latter part of the session, with an overall negative bias. It formed a small-bodied candle on the daily scale with long upper and lower shadows, as selling pressure was seen at higher zones, but mild buying interest was visible at lower levels.
“Now till it holds below 55,000 zones weakness could be seen towards 54,500 then 54,250 zones, while hurdles are seen at 55,250 then 55500 zones,”the MOFSL analyst added.
Stocks to buy
Chandan Taparia has recommended two stocks to buy tomorrow. Taparia recommends buying Federal Bank and Indian Hotels Company shares.
Indian Hotel | Buy | Target Price: ₹830 | Stop Loss: ₹760
Stock has formed a strong base around its 200 DEMA and witnessed a sharp bounce over the last few sessions. It has given a one-year range breakout above the 750 level and is sustaining above the breakout zone, highlighting improving price strength. The stock has formed a bullish candle and is making higher highs on the weekly scale, indicating sustained buying momentum. Holding above the 780 level could extend the up move towards the 820 zone and beyond.
Federal Bank | Buy | Target Price: ₹368 | Stop Loss: ₹336
After the recent correction, the stock has resumed its uptrend and has been forming higher highs over the last few sessions, indicating improving bullish momentum. It has also reclaimed its short-term moving averages and is on the verge of a breakout above the downward-sloping trendline. Sustaining above the trendline resistance could trigger the next leg of the up move.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
